Pfizer inked a $5.4 billion deal to buy Global Blood Therapeutics. The deal could add a peak $3 billion in worldwide sales to Pfizer's coffers. GBT's approved treatment for sickle cell disease, Oxbryta, generated $71.6 million in sales.

Pfizer will pay $68.50 in cash per share of GBT stock. On today's stock market, GBT shares jumped 4.3% to 66.60. The deal could add revenues toward the back half of the decade for what we see as a reasonable price.

In the second quarter, treatments for rare diseases accounted for just 3% of Pfizer's total revenue. Vyndaqel could soon face competition from Alnylam Pharmaceuticals (ALNY) Oxbryta offers a "functional cure" for sickle cell disease, Berens said.

Pfizer expects the deal to close in the fourth quarter. GBT is working on treatments for episodes of sickle cell disease. Sickle cell is becoming an increasingly common target for biotech companies as its genetic cause is now better understood. RBC Capital Markets analyst Gregory Renza: "We see the acquisition as a strategic fit for Pfizer"

The deal includes a "no shop" provision, meaning GBT would be on the hook for a $271 million termination fee. If Pfizer breaks up the deal, it would cost the drug giant $326 million. Crispr Therapeutics and Vertex Pharmaceuticals are partnered on a gene-editing approach.
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